24th Sep 2025 10:13
(Alliance News) - Gresham House Energy Storage Fund PLC on Wednesday said it is prioritising reinvestment over near-term cash returns to shareholders, as it looks to capitalise on industry growth opportunities.
The London-based fund investing in utility-scale battery energy storage systems said net asset value fell 1.5% to 107.71 pence per share at June 30, from 109.35p at December 31.
This decline was due primarily to a further reduction in independent third-party revenue forecasts, said the fund, with this mostly offset by a mix of increases in value from projects progressing to operational status, cash flow generation in the portfolio, and operational life increases on certain assets.
Despite the weaker third-party forecasts, portfolio revenue was "strong", and outperformed against revenue forecasts so far during the year, said Gresham House Energy Storage.
Underlying portfolio revenue rose 77% to GBP31.7 million from GBP17.9 million a year prior, with underlying portfolio earnings before interest, tax, depreciation and amortisation rising 97% to GBP20.5 million from GBP10.5 million.
The investment trust owed these advances to an improving revenue rate and increased operational capacity.
Shares in the fund edged 0.3% lower to 72.76 pence on Wednesday morning in London.
Discussing its capital allocation policy, Gresham House Energy Storage said that following extensive engagement with shareholders, it is prioritising reinvestment over near-term cash returns to shareholders.
The company said it is focused on capitalising on strong growth opportunities in the battery energy storage system industry, where it sees a possibility to capture "substantial value."
"For the next two financial years dividends are expected to be set at a very low level in order to prioritise growth opportunities," said the fund.
Gresham House Energy Storage expects to pay a single dividend of at least 0.25p per share in 2026, with respect to 2025. It added that it expects to a pay a small dividend of 11p per share in November this year, in relation to 2024, "to comply with its Investment Trust Company regulatory obligations."
It added that it will review its dividend policy at the end of next year.
"This half-year period has been a critical step in delivering against the three-year strategic plan we set out in November 2024. GRID has now made significant progress in strengthening its foundations to support future value creation," said Chair John Leggate.
"The board believes that the growth opportunities we see represent the best future total return for investors and we are pleased to see good support for this approach among our shareholders. The growth that GRID aims to deliver over the next two years should significantly increase the revenue-generating base for the Company, which will in turn drive greater long-term returns for shareholders."
By Christopher Ward, Alliance News reporter
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